Those who are poor cannot invest
Merkel and Hollande are presenting two contrasting programs for the planned EU growth summit at the end of June. A compromise will have to be reached in the end, but there are still considerable risks. If the two leaders manage to forge a joint concept for the currency zone out of their different plans, they could go down in history as the saviors of the euro. If they fail, the process that a growing number of experts believe is unavoidable will only be accelerated: the breakup of the monetary union.
"Hollande's ideas are not fundamentally different from those of his predecessor Sarkozy, who consistently held similar views. Sarkozy, however, worked out his differences with Merkel in back rooms, so as to bring calm to the markets. In contrast, President Hollande highlights the differences and seems convinced that it is up to him to put Germany on the right track."
"But there are also signs of rapprochement. During his first official visit to Berlin, Pierre Moscovici, the new French minister of economics and finance, revealed some sympathy for the German line. He confirmed the new French government's intention to reduce the national deficit in the coming year to below the upper limit of 3 percent of GDP, and to eliminate all new borrowing starting in 2017. He also underscored how important healthy budgets are for growth and employment. Those who have too much debt become impoverished, he said. And those who are poor, he added, cannot invest."
"Hollande's ideas are not fundamentally different from those of his predecessor Sarkozy, who consistently held similar views. Sarkozy, however, worked out his differences with Merkel in back rooms, so as to bring calm to the markets. In contrast, President Hollande highlights the differences and seems convinced that it is up to him to put Germany on the right track."
"But there are also signs of rapprochement. During his first official visit to Berlin, Pierre Moscovici, the new French minister of economics and finance, revealed some sympathy for the German line. He confirmed the new French government's intention to reduce the national deficit in the coming year to below the upper limit of 3 percent of GDP, and to eliminate all new borrowing starting in 2017. He also underscored how important healthy budgets are for growth and employment. Those who have too much debt become impoverished, he said. And those who are poor, he added, cannot invest."
